This is for financial mathematics 1. Tucker deposits $7,400 in an account that pays 3.15% simple interest. He keeps the moneyin the account for five years, but doesn't make any deposits or withdrawals. How much interestwill he receive after the five years?I=P=7400v=0.0315t=52. Wilson estimates that it will cost $85,000 to send his two year old son to ASU in 16 years. Hecurrently has $9,000 to deposit in an account. What simple interest rate would he need so that$9,000 grows into $85,000 in 16 years? Round to the nearest percent.8500076000=(9000)(r)(16)900076000I=76000p=9000Y=?t=16I=(1400)(0.0315)(5)I=1.165.50A= PertA = amountP= Principale=constantr=rate of InterestS476000 = 144000r144001440003. How long will it take $7,000 to double in an account that pays 2.8% simple interest? Round tothe nearest year.7000=6000) (0.028)(€)1-7000P= 7000v=0.028t=7000=196t196 19636-t4. If you deposit $20,000 at 4.56% simple interest, what would your ending balance be after sixyears?4.56A = 20000 e^ (00466) (6)1000.04567-811A= PertPE 20 000-=0,0456(= 6T-20000)(0.045616)20000 (0.04565 (6)57

Hi student Since there are multiple questions asked, we will answer only first question. Time value…

Answered: 1. Tucker deposits $7,400 in an account…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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1. Tucker deposits $7,400 in an account that pays 3.15% simple interest. He keeps the money in the account for five years, but doesn't make any deposits or withdrawals. How much interest will he receive after the five years? I= P=7400 v=0.0315 I=(1400)(0.0315)(5) I=1.165.50 t=5